Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Peloton's (NASDAQ: PTON) share price has fallen over 6.5% on Wednesday after a reversal saw them recall the Tread+ and Tread treadmill machines after safety concerns.
In a statement released today, the recall was announced after “one child death and 70 incidents.”
Its share price is currently trading at $90.29 after initially falling as low as $88.15 per share.
Peloton has said customers who have purchased either treadmill should immediately stop using it and contact Peloton for a full refund or another qualified remedy.
The company said it has “stopped sale and distribution of the Tread+ and continues to work on additional hardware modifications.”
In the US, the Tread product was sold as part of a limited invitation-only release with Peloton stating they are working on a repair to be offered to Tread owners in the coming weeks.
Peloton CEO, John Foley, said: “I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+. We should have engaged more productively with them from the outset. For that, I apologize.
“Today’s announcement reflects our recognition that, by working closely with the CPSC, we can increase safety awareness for our Members. We believe strongly in the future of at-home connected fitness and are committed to work with the CPSC to set new industry safety standards for treadmills.”
The US Consumer Product Safety Commission (CPSC) warned about the safety of the Tread+ product last month.
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